Alternative Investments: Airbnb Raises $1 Billion to Address Coronavirus

April 8, 2020 | Alternative Investments, News
https://dailyalts.com/wp-content/uploads/2019/11/54e3dd474d51ab14ea898579ce203e7c1d22dfe05455744d702d7ad2_640.jpg

Airbnb has managed to raise $1 billion to help run the business and pay the bills during the downturn. Most of its properties have shut down thanks to the spread of the coronavirus.

Airbnb Latest Capital Raise

Silver Lake and Sixth Street Partners will invest $1 billion in a combination of debt and equity for Airbnb. This capital can help the business operate until government officials lift travel restrictions. The terms and valuation of the deal are not public. That said, various reports indicate that the deal is favorable to Airbnb.

No requirements reportedly exist for an IPO date in this deal.

In March, the company lowered its internal valuation to $26 billion, from the $31 billion listed in the last capital raise in 2017.

The travel industry is reeling as almost all hospitality companies have closed and have generated no revenue. Publicly traded hospitality companies have taken a much larger hit from the slowdown and sell-off.

Capital Deployment

The cash will help offset the $250 million fund Airbnb set aside to reimburse hosts who had cancellation between March and May.

The short term rental company offered the return of deposits on all rentals in that time frame. This left many hosts scrambling to find a way to pay mortgages on those properties. Rather than lose hosts, the company decided to use the fund to pay back the owners with cancellations.

This economic slowdown will probably push back the hoped for Initial Public Offering until sometime in 2021 at the earliest.

Related: Venture Capital: Who Will Dare to IPO After 2019’s List of Stumbles

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2023/12/AMD_headquarters_santa_clara.624da707519a6.jpg
Artificial Intelligence: AMD Takes On Rivals In The AI Chip Sweepstakes
December 7, 2023     Artificial Intelligence, News

Chipmaker AMD (NASDAQ: AMD) has unveiled a range of innovative AI solutions spanning from data centers to personal computers. The AMD Instinct MI300 Series features data center AI accelerators, while…

https://dailyalts.com/wp-content/uploads/2023/12/RHCEU-Inline.jpg
Digital Assets: Robinhood Debuts Crypto Trading On Its App In The EU
December 7, 2023     Digital Assets, FinTech, News

Robinhood (NASDAQ: HOOD) has launched its Crypto app in the European Union (EU), allowing eligible customers to engage in crypto trading with the added incentive of earning Bitcoin rewards. Customers…

https://dailyalts.com/wp-content/uploads/2023/12/Samsung_UK_Samsung_Pay_Lifestyle_0552-revised-Pictogram-23.11.30-1024x744-1.png
FinTech: Samsung Electronics Ties With Mastercard’s Wallet Express
December 7, 2023     FinTech, News

Samsung Electronics (KRX: 005930) and Mastercard (NYSE: MA) have partnered to launch the Wallet Express program, offering banks and card issuers a cost-effective way to expand digital wallet offerings. Through…

https://dailyalts.com/wp-content/uploads/2023/12/Revaia-founders.jpg
Venture Capital: Revaia, Europe’s Biggest Female-Led VC Firm, Racks Up $160M For Second Fund
December 7, 2023     ESG and Sustainability, News, Venture Capital

Revaia, Europe’s largest female-founded venture capital firm, has successfully raised €150 million ($160 million) for its second fund, Revaia Growth II. The funding was secured from sovereign wealth funds, family…